Corn growers know the importance of market diversification for their exports. It takes each and every market to provide the optimal value for corn exports. The U.S. Meat Export Federation (USMEF) has released an updated version of the independent study aimed at quantifying the value red meat exports provide to U.S. corn and soybean producers. The original study was conducted in 2016 with updates also released in 2018 and 2019.
Red meat exports added 12 percent of bushel value to the U.S. corn farmer in 2019. At an average of $3.75 per bushel, $0.46 is from red meat exports. The study indicated that without red meat exports, corn growers would have lost $6.4 billion in corn revenue in 2019.
Other highlights from the updated study include:
Value of Red Meat Exports’ Feed Use of Corn and Soybeans
- In 2019, U.S. beef and pork exports used 480 million bushels of corn. Corn revenue generated by pork exports totaled $1.8 billion (480 million bushels x average annual price of $3.75/bushel).
- In 2019, U.S. pork exports used 2.12 million tons of soybean meal, which is the equivalent of 89.2 million bushels of soybeans. Soybean revenue generated by pork exports totaled $751.7 million (89.2 million bushels x average annual price of $8.43/bushel).
- Beef and pork exports also used about 3 million tons of distiller’s dried grains with solubles (DDGS) in 2019 at an annual average price of $137/ton. This generated $411.8 million in revenue for ethanol mills’ co-products.
- The projected market value of red meat exports to U.S. corn from 2020-2029 is $23.1 billion.
“The animal ag industry is the largest user of U.S. corn, and it’s beneficial to have an understanding of the impact of the value of red meat exports,” said Dan Wesely, chairman of National Corn Growers Associations Market Development Action Team. “It’s important to partner with USMEF to work together to continue to expand and grow these markets, especially during these challenging times.”
World Perspectives, Inc., conducted the study